For decades, Canada Post has been under intense scrutiny, undergoing countless analyses and reviews – perhaps more than any other government entity in the nation’s history.
“It’s been analyzed exhaustively; the problems are well-known,” remarked Ian Lee, an associate professor of management at Carleton University and a veteran of many such studies himself.
True to form, the federal government recently announced yet another review into the postal service.
However, this time, the government took an unprecedented step. Following recommendations from a comprehensive report released in May, it issued a directive for Canada Post to fundamentally transform its operations and service delivery model.
Citing Canada Post as ‘effectively insolvent,’ Joël Lightbound, the minister of public services, mandated the end of door-to-door letter mail service and removed a long-standing prohibition against closing rural post offices, a ban that had been in place since the 1990s.
This decision marks a significant policy shift for the Liberal government. During the 2015 election, then-candidate Justin Trudeau had actively opposed a previous Canada Post initiative to transition urban residents to community mailboxes, a plan he swiftly scrapped upon becoming prime minister.
The timing of this announcement was equally contentious. Canada Post employees, who had been compelled to return to work after a December walkout, remain technically on strike. The Canadian Union of Postal Workers has consistently advocated in negotiations for job security and an expansion of Canada Post’s services. Therefore, it was hardly unexpected when, following this pivot by the new Liberal government led by Prime Minister Mark Carney, postal workers immediately resumed their strike, bringing the entire system to a halt.
Previously, postal workers had walked out after Canada ordered an end to door-to-door delivery.
Professor Lee, with his background in Canada Post’s financial operations, clarified that this renewed strike isn’t targeting the post office or its management.
“They are directly protesting the government’s public policy decisions,” he stated. “The Canadian government has effectively taken control of the situation.”
Feeling undermined by the government’s intervention in their ongoing negotiations, the union expressed profound frustration and anger.
“Minister Lightbound’s announcement was a direct attack on our public postal service, the public’s right to engage in political processes, and quality unionized jobs nationwide,” declared Jan Simpson, the union’s national president, in a statement Friday. She emphasized, “This government was elected promising to protect vital institutions, not dismantle them, especially when facing economic threats.”
The path to resolving this latest strike remains uncertain.
On Friday, the union proposed a new contract, which Canada Post quickly dismissed as financially unfeasible. The postal service then requested additional time to prepare its own updated offer.
Although government-owned, Canada Post transitioned into a crown corporation in 1981, expected to self-finance through its services. However, since 2018, it has accumulated over 5 billion Canadian dollars in losses, relying solely on government bailouts to stay afloat.
This financial downturn began with a sharp decline in letter mail volume, traditionally Canada Post’s primary revenue stream. Initial hopes that expanding parcel delivery could revitalize the organization have been dashed by the fierce competition in that market, exacerbated by new companies employing low-wage, non-unionized gig workers.
Professor Lee predicted a prolonged strike, suggesting it would only conclude with new legislation that profoundly reshapes the postal service.
“It will be incredibly contentious,” he warned, noting that such a drastic overhaul could eliminate 30,000 to 40,000 well-compensated jobs. “This is set to become the most significant public policy debate since the free trade discussions of 1988.”
The crucial question now is: What should Canada Post evolve into?
Privatization, according to Professor Lee, is not a viable option, primarily due to the vast number of remote Canadian communities that cannot be served profitably by a private entity.
Instead, he advocates for the government to abandon the notion of Canada Post being a financially self-sustaining business and instead reinstate it as a pure public service. Under this model, letter mail, including community mailboxes, could be entirely phased out. The focus would shift to package delivery, particularly for remote and rural areas, while maintaining an essential urban presence to connect these locations with city institutions and businesses.
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Across Canada: More Recent News
- A recent visit to Wolfe Island, Ontario, highlighted the cessation of a ferry service that connected it to the United States for over two centuries. There’s optimism that the boat might resume its short crossings next year.
- Reporter Norimitsu Onishi and photographer Renaud Philippe journeyed to Gjoa Haven, Nunavut, to explore a high-tech greenhouse project. This initiative aims to provide a cost-effective alternative to importing fresh produce from the south, potentially fostering a healthier diet for the Inuit community.
- This week, Canada joined several other nations in formally recognizing Palestine, diverging from the United States’ stance. This development carries significant implications for future international relations.
- Basketball star Shai Gilgeous-Alexander made appearances in Hamilton, Ontario, and Toronto to debut his highly anticipated first signature sneaker.
- Eleven Canadian establishments earned a spot on the inaugural list of North America’s 50 Best Restaurants. According to Julia Moskin’s report, many selections on this list are notably more casual compared to their global counterparts.
- Canadian astronaut Jeremy Hansen, slated for a NASA lunar mission as early as February, stressed the importance of global cooperation this week. He affirmed that "collaboration must be our ultimate objective if humanity is to secure a prosperous future on Earth."
Ian Austen is a seasoned reporter covering Canadian affairs for The Times. Originally from Windsor, Ontario, he now works from Ottawa, bringing two decades of journalistic experience to his coverage.
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